A trading company made a profit of £50 000 in 2006 (Year 1).
A model for future trading predicts that profits will increase year by year in a geometric sequence with common ratio \(r, r > 1\).
The model therefore predicts that in 2007 (Year 2) a profit of £50 000r will be made.
- Write down an expression for the predicted profit in Year \(n\).
[1]
The model predicts that in Year \(n\), the profit made will exceed £200 000.
- Show that \(n > \frac{\log 4}{\log r} + 1\).
[3]
Using the model with \(r = 1.09\),
- find the year in which the profit made will first exceed £200 000,
[2]
- find the total of the profits that will be made by the company over the 10 years from 2006 to 2015 inclusive, giving your answer to the nearest £10 000.
[3]